Oil prices rose in Asian trade on Monday on the bright outlook for fuel demand growth over the next quarter, while investors looked forward to the OPEC + meeting this week to see how manufacturers will respond.
Brent crude futures for August were up 50 cents, or 0.7%, at $ 69.22 a barrel, the highest level in two years on Friday at 0614 GMT. U.S. West Texas median crude was $ 66.87 a barrel, 55 cents or 0.8%.
U.S. and UK markets closed on Monday due to public holidays.
Both contracts are on track for the second month of profit as analysts expect oil demand to outpace growth and supply despite the withdrawal of Iranian crude and capacitor exports.
Iran has been in talks with world powers since April, and Tehran and Washington must impose sanctions and nuclear action to return to full compliance with the 2015 nuclear deal.
“We see a high demand of 650,000 barrels per day and Q3 and Q4 at 950,000 BPD, respectively,” ANZ analysts said, adding that there was an increase of 500,000 BPD, in Iranian production.
The Organization of the Petroleum Exporting Countries will meet on Tuesday.
The group, known as OPEC +, is expected to continue its plan to gradually ease supply cuts until July.
“Iran does not consider any arrangement with OPEC + to be derailed, so the cuts already agreed are expected to continue from July, and they are already pending,” said energy analyst Virender Chauhan.
Separately, crude production in the United States rose 14.3% in March, according to the Energy Information Administration on Friday, while Baker Hughes data showed oil and gas rickshaws rose for the 10th consecutive month last week.
1.033 million barrels of Iranian crude oil were exported to the U.S. in March. Landed onshore, it has been shipping Iranian oil to the United States since 1991.